"Vietnam's automobile industry has gained a significant growth over the years thanks to booming sales," said Benjamin Chau, assistant executive director of the Hong Kong Trade Development Council (HKTDC) on his trip to seeking business opportunities in Vietnam early this month.
The objective statement comes from a fact that Vietnam has witnessed critical sale volumes of cars despite a price hike at the local market.
Although prices of cars have been increasing at the local market over the months, even mostly hitting the highest level in the region and the world market as well, the volume of cars sold in Vietnam is now expected to continue to rise.
According to the latest statistics released by Vietnam Automobile Manufacturers Association (VAMA), 11 operational car joint ventures sold out 3,285 units in June, bringing the total sales to 16,128 units in the first half of this year, up 26% on-year.
Toyota has ranked first among these joint ventures with sales of 1,375 cars during the time, followed by Visuco, Ford, Vinastar with respective figures of 373, 360, and 333. Mekong is reported to end the list with the modest sales of 22 units.
Toyota Vios and Zace, Visuco Carry Truck, Vidamco Matiz, and Mercedes Sprinter are being favored at most in Vietnam.
The Chairman of VAMA Sasagawa, who is also general director of Toyota Vietnam, has predicted that earnings from domestic car sales of touring cars would reach the highest level among others despite an increasing price. The forecast is even right for luxury cars, which are often priced at around US$30,000-40,000 per unit.
Phan Dang Tuat, Head of Institute of Industry Policy and Strategy Research, Ministry of Industry said that Vietnam is a potential market for automobile manufacturers but it has yet to develop as expected.
Vietnam's currently average auto consumption is as low as one car per 145 people. This is much lower than that in Thailand with the rate of one per nine and in the Philippines 1 per 32, correspondingly, proving that demand for private care is likely to increase, even surpassing that of the regional countries, in the coming time.
Vietnam automobile market is expected to get further vigorous as Vietnam joins AFTA and CEPT by late 2007, which will allow more and more new car suppliers to enter the country enjoying a tax exemption by 0%-5% while forcing Vietnam to raise its excise tax by 90%.
Almost all domestic automobile manufacturers will launch their new products as the best way to further boosting up car sales at the local market. Early this year, Vidamco had launched two new models of Magnus L6 Diamond and Color Matiz at a preferential price of around US$300-1,200 for customers within first three months.
Right after, Toyota Vietnam unveiled the new Zace Surf, targeting customers that are families and private companies. The next was Ford Vietnam with the launch of its first 7-seat Ford Everest late June.
Ford Everest is equipped with powerful engine to offer satisfactory performance in many driving conditions and an all-new, distinctive design that helps create a "wow" effect wherever it makes presence, bringing a record sale of 1,200 units to Ford Vietnam within three months.
In addition, the Vietnamese businesses have also paid due attention to automobile exhibitions and marketing promotions by offering price reductions and financial supports, benefiting customers. Vidamco has recently initiated a promotional campaign under which the prices of Vidamco automobile have dropped by around US$1,000-1,400 per unit.
Mercedes-Benz Vietnam has, meanwhile, joined hands with HSBC to provide financial supports to its customers, who will get loans, up to 60% of the total value of each Mercedes-Benz they have bought, from HSBC within at most three years at a preferential interest rate.
Toyota Vietnam was reportedly the best seller in the country with a record sale of 5,602 units in the first six months of this year, gaining 34.7% of domestic automobile market shares, which increased to 41.8% in June alone, according to statistics released by the Toyota Motor Vietnam (TMV).
To lead to the success, TMV has continuously tried to pursue the perfection of Toyota value by the working philosophy of Customer first, high quality product and perfect after-sales services.
Always be the pioneer in all aspects, one more time, Toyota Vietnam Toyota Vietnam proves its commitment to further its long-term business strategy in Vietnam through the first-ever Toyota Beauty Salon to make beauty for customers.
The Toyota Beauty Salon Service of Agriculture and Rural Development, the first of its kind in Vietnam to date, is aimed at providing customers with the services like interior washing of carpet, upholstery, plastic and panel...; exterior polishing of body, glass, mirror, resin &chrome-plated parts, alloy-wheel...; engine and underbody cleaning; and Toyota Genuine Accessory installation.
By the new service, Toyota wishes to bring more benefits and the best satisfaction to its customers as well as promote Toyota Genuine Accessory.
The Ministry of Industry has forecast that the demand for cars in Vietnam will reach nearly 113,000 by 2010 meanwhile total registered capacity of local automobile makers is estimated at 120,000 units per annum.
"If we do not make thorough preparations correctly now, "supply over demand" crisis will emerge, promising to benefit more for customers but threatening Vietnam's automobile industry," Tuat said. He added that local automobile industry will encounter many challenges in the near future as the country has too many auto assemblers but quite a few operating in parts production.
"With an aim to develop the auto auxiliary industry, Vietnam is likely to see further distinctive growth in its automobile industry," Tuat affirmed, admitting that auto projects are mostly small-sized ones with poor technology and low localization rate.
Thi Van
Vietnamese
